After the historic increase in the value of the dollar on Thursday in Pakistan, the external debt(Loan) of the country has increased by at least two and a half thousand billion rupees.
After the open market, the unannounced “cap” imposed on the value of the dollar in the inter-bank market was also removed on Thursday, as a result of which an extraordinary increase in the value of the dollar was seen and the dollar reached 255 rupees during the trading period. It was 230.89 rupees a day ago, that is, an increase of more than 24 rupees was recorded in the value of the dollar in one day.
After the open market, the unannounced “cap” imposed on the value of the dollar in the inter-bank market was also removed on Thursday, as a result of which an extraordinary increase in the value of the dollar was seen and the dollar reached 255 rupees during the trading period. It was 230.89 rupees a day ago, that is, an increase of more than 24 rupees was recorded in the value of the dollar in one day.
Increase in external debt
The rise in the value of the dollar also has a major impact on the value of Pakistan’s external debt, which is worth about 130 billion dollars. Economic analysts believe that the value of the dollar will be at least 250 rupees, which means 250 rupees against 230.89 rupees. According to the calculations, external loans have increased by 2 thousand 500 billion rupees in one day. And if the value of the dollar is 255 rupees, then the increase in the value of external debt will reach 3 thousand billion rupees.
Increase in prices of imported goods
Pakistan imports up to 80 percent of its raw materials, the price of which will increase due to the dollar’s appreciation, and as a result, the cost of manufactured goods from these raw materials will also increase. The price of imported products will also increase proportionally if the value of the dollar increases.
Is it the right decision to leave the dollar open?
Economists agree that the dollar should be left open based on demand and supply in the market. One of the basic conditions of the IMF also includes the condition that the value of the dollar should be in accordance with the market mechanism, but the government should not allow the interbank and open market exchange. The price of the dollar was frozen, as a result of which the black market came into existence and all the transactions started to be done in the black. Experts say that there is no harm in making the dollar market-based. There will be an unusual situation for half a day, then the dollar starts trading at the original price. will